What is the fundamental difference between a Series 6 and a Series 7 license?

The distinction between a Series 6 and a Series 7 license is fundamental to understanding the regulatory framework for selling securities. A Series 7 license is much broader in scope, permitting the holder to sell all types of securities, including stocks, bonds, options, and various investment products. This comprehensive coverage makes the Series 7 license a more versatile and powerful credential for financial professionals.

In contrast, the Series 6 license is specifically tailored for those who wish to deal primarily with mutual funds and variable products, such as variable annuities. This limitation means that individuals holding a Series 6 license cannot sell individual stocks or bonds, restricting their capability in the securities marketplace. This difference in the breadth of the types of products one can sell is crucial for anyone considering a career in financial services or advising clients on investment options.

Understanding these differences helps clarify the roles and responsibilities of financial professionals holding these licenses, as well as the types of services they can offer to their clients.